The idea behind this trade setup is:
1. One group of traders who trade only based on Resistance and Support will see the level of 80 as a good support area and start buying.
2. Another group of traders who trade based on the Trendline Support will also get interested at these price levels and start buying.
So that means at this level there may be more buying interest. Entry needs to be managed properly and only after some confirmation.
1. One group of traders who trade only based on Resistance and Support will see the level of 80 as a good support area and start buying.
2. Another group of traders who trade based on the Trendline Support will also get interested at these price levels and start buying.
So that means at this level there may be more buying interest. Entry needs to be managed properly and only after some confirmation.
Comment:
The trade is no more active as both the trendline and support have been broken.